Malaysia Inflation Rate Below Estimates

Malaysia’s annual inflation came in at 1.6% in December 2025, compared with November’s figure and market forecasts of 1.4%. It was the highest reading since January, with upward price pressures evident across all components: food & drinks (1.5% vs 1.5% in November), alcoholic beverages & tobacco (2.5% vs 2.4%), clothing (0.1% vs -0.1%), housing (0.9% vs 0.7%), furnishing (0.3% vs 0.2%), health (1.5% vs 1.5%), transport (0.1% vs 0.2%), communication (0.9% vs -1.3%), recreation (0.8% vs 1.2%), education (2.8% vs 2.6%), restaurants & accommodation services (3.1% vs 3.4%), insurance & financial services (5.6% vs 5.6%), and miscellaneous items (5.7% vs 5.6%). Core inflation, which excludes volatile fresh food and administered prices, stood at 2.3% yoy, the highest since October 2023. Monthly, consumer prices increased 0.3%, picking up from a flat reading in November and pointing to the fastest pace in ten months.

Malaysia’s annual inflation accelerated slightly to 1.4% in November 2025, up from 1.3% in October but below market expectations of 1.5%. Inflation picked up for alcoholic beverages & tobacco (2.4% vs 0.3% in October) and education (2.6% vs 2.4%), while rebounding for transport (0.2% vs -0.1%). Meanwhile, inflation held steady for food prices (1.5%), remaining at the softest pace in over four years, as well as for financial services (5.6%), health (1.5%), recreation (1.2%), and restaurants (3.4%). Prices moderated for housing (0.7% vs 1.1%), furnishing (0.2% vs 0.3%), and miscellaneous items (5.6% vs 6.0%), amid declines in clothing (-0.1% vs -0.3%) and communication (-1.3% vs -2.4%). Core inflation, which excludes volatile fresh food and administered prices, rose 2.2% year-on-year, the same pace as in October, remaining the fastest in two years. On a monthly basis, consumer prices were unchanged after edging down 0.1% in October.

Malaysia’s annual inflation eased to 1.3% in October 2025, down from September’s seven-month high and market expectations of 1.5%. Food prices increased the least in over 4 years (1.5% vs 2.1% in September). Cost of housing also eased (1.1% vs 1.5% ), amid declines in prices of transport (-0.1% vs 0.7%), clothing (-0.3% vs -0.2%) and communication (-2.4% vs -4.5%). In contrast, inflation held steady for alcoholic beverages & tobacco (at 0.3%), education (at 2.4%), and financial services (at 5.6% ), while prices accelerated for furnishing (0.3% vs 0.2%), health (1.5% vs 1.3%), recreation (1.2% vs 0.9%), restaurants (3.4% vs 3.3%), and miscellaneous items (6.0% vs 4.8%). Core inflation, which excludes volatile fresh food and administered prices, rose 2.2% yoy, the fastest pace in two years, following a 2.1% increase in September. On a monthly basis, consumer prices fell 0.1%, reversing September’s 0.2% rise, which had been the steepest increase in seven months.